The Caribbean rum industry is already getting an unwelcome taste of the fallout from the shifting global economic and political landscape, including major United States (US) policy changes.
Margaret P. Monplaisir, chairperson of the West Indies Rum and Spirits Producers Association (WIRSPA), reports that this growing uncertainty “has already begun to impact our industry”.
She outlines the challenge in the latest WIRSPA “chairperson’s letter” which is published annually as an update on regional rum industry issues.
Monplaisir, who was re-elected when WIRSPA held its the annual general meeting in July 2024, said: “The announcement of new tariffs has created business uncertainty, particularly for us as export-focused producers, whose largest market remains the United States.
“Moreover, the weakening of the international trade framework suggests that we will see a growing reliance by our main export markets in North America and Europe on bilateral free trade agreements.
“This shift raises concerns about the potential erosion of our trade preferences in those markets relative to third countries, making it imperative that we remain vigilant and proactive in advocating for maintenance of current arrangements in support of our industry,” the chief executive officer of St. Lucia Distillers Group of Companies explained.
She said in this regard that WIRSPA members “will also continue to urge regional governments to push for new trade deals that expand our non-traditional markets”.
“As an industry, we cannot afford to be complacent; we must engage strategically and collectively to ensure that our interests are safeguarded in a rapidly evolving global trade environment,” Monplaisir stated.
Rules of origin
“Looking back at 2024, we made significant progress in strengthening the authenticity and provenance of our products within the European Union through the Economic Partnership Agreement (EPA).
“The ongoing review of the rules of origin of the EPA is a crucial step toward ensuring that our ‘brand’ remains protected and that we maintain a competitive edge in international markets. This effort aligns with our broader mission to enhance the reputation of Caribbean rum on the world stage.”
Beyond trade and exports, Monplaisir said promoting responsible consumption
of alcohol, and embracing sustainability would remain high on WIRSPA’s agenda this year.
She said the regional rum industry was committed “to promoting responsible drinking and reducing alcohol-related harm”.
“Our industry recognises its role in fostering a culture of moderation and responsibility. To this end, WIRSPA members have actively engaged in initiatives aimed at raising standards, advocating against excessive drinking, and protecting vulnerable populations, particularly children,” she noted.
“From anti-drunk driving campaigns to educational programmes about the risks of alcohol abuse, we have been steadfast in our efforts to effect meaningful change.”
The chairperson added: “However, we acknowledge that this journey is far from over. Our industry alone cannot drive this transformation; we must enlist the support of all businesses involved in the production and distribution of alcoholic beverages.
“Most importantly, success in this area hinges on close collaboration with governments, health organisations, and educational institutions. Together, we must continue to raise awareness about the dangers of excessive drinking and combat the normalisation and glorification of such behaviours.”
Monplaisir said that “parallel to our work on responsible consumption, WIRSPA and its members have also been at the forefront of sustainability initiatives”.
“As stewards of our environment, we recognise the need to integrate sustainable practices into our operations. Companies across our network have invested in recycling programmes, energy efficiency measures, transitioning to renewable energy sources, energy recovery from waste, and water reduction initiatives,” she said. “All producers are committed to ensuring that we act as responsible stewards of our limited resources.”
She also reported that “great progress was made in 2024 in reviewing and updating the CARICOM Rum Standard. Rum producers have been integrally involved in this process, and we anticipate its completion in 2025.” (SC)
